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Forex - NZD/USD moves higher as risk appetite improves

Published 02/01/2011, 03:15 AM
NZD/USD
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EUR/NZD
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Investing.com – The New Zealand dollar rose to a two-day high against its U.S. counterpart on Tuesday, as concerns over unrest in Egypt receded and risk appetite improved.

NZD/USD hit 0.777 during late Asian trade, the pair’s highest since January 28; the pair subsequently consolidated at 0.7754, rising 0.42%.

The pair was likely to find support at 0.7683, Monday’s low and short-term resistance at 0.7792, the high of January 28 and a one-week high.

The kiwi tracked the Australian dollar higher after the Reserve Bank of Australia kept rates steady for February but signaled more rate hikes were on the way.

Also Tuesday, data showed that prices for New Zealand-produced raw materials rose for a fifth straight month, to hit a new record in January, as global food prices continued to climb.

The index ANZ Commodity Price Index climbed 3.8% and has surged by almost a fifth since August last year as the price of commodities increased.

The kiwi was also higher against the euro, with EUR/NZD shedding 0.18% to hit 1.7691.

Later in the day, in the U.S. the Institute of Supply Management was to publish data on manufacturing growth.

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